Dick’s Sporting Goods (DKS) Q3 2023 quarterly earnings
A Dick’s Sporting Goods store stands in Staten Island on March 09, 2022 in New York City.
Spencer Platt | Getty Images
Sales and profit at Dick’s Sporting Goods bounced back in the fiscal third quarter, prompting the retailer to raise its full-year guidance on Tuesday after shocking investors earlier this year when it lowered its outlook about theft concerns.
Dick’s beat Wall Street estimates on the top and bottom lines for the period. In a press release, the company said it is “excited” for the holiday season after seeing “strong” back-to-school sales.
Dick’s shares opened more than 9% higher after the news.
Here’s how the athletic goods retailer did in its fiscal third quarter compared to Wall Street expectations, based on a survey of analysts by LSEG, formerly Refinitiv:
- Earnings per share: $2.85, adjusted, vs. Expect $2.44
- Income: $3.04 billion vs $2.94 billion expected
The company’s reported net income for the three months ended Oct. 28 was $201 million, or $2.39 per share, compared with $228 million, or $2.45 per share, a year earlier. Excluding one-time items, Dick’s saw earnings per share of $2.85.
Sales rose to $3.04 billion, up about 2.8% from $2.96 billion a year earlier.
For the full year, the company now projects earnings per share between $11.45 and $12.05, compared to the range of $11.27 to $12.39 that analysts were expecting, according to LSEG. Dick’s raised its guidance from a previous range of $11.33 to $12.13. But it’s still below the original outlook the company set earlier this year, when it said it expected earnings between $12.90 and $13.80.
Dick’s also raised its comparable sales outlook slightly and expects them to be up between 0.5% and 2%, compared to a previous flat range of up to 2%. Much of that range would exceed the 0.7% increase that analysts had been expecting, according to StreetAccount.
Dick’s did not share further details about its holiday forecast. But because it only slightly raised its same-store sales outlook despite strong third-quarter hits, Dick’s appears cautious heading into the holiday season, reflecting sentiment from shoppers -other retailers are concerned that demand will be tepid.
When Dick’s reported fiscal second-quarter earnings this summer, its stock fell 24% after it blamed theft and aggressive signals for a staggering 23% drop in profits. An increase in “organized retail crime and theft in general” — as well as aggressive moves to clear excess inventory — contributed to the loss of profit. The company said that would affect its guidance for the year.
While Dick’s earnings guidance remains below the range it originally set for itself, strong sales in the back-to-school months allowed the company to raise its sights and set a positive tone for the season. essential holiday shopping.
“We are pleased with our results in the third quarter. With our best-in-class athlete experience and diverse mix, we had a very strong back-to-school season and continued to gain market share as consumers prioritize for DICK’S Sporting Goods to meet their needs. “, President and CEO Lauren Hobart said in a press release. “As a result of our strong performance in Q3, we are raising our full-year outlook, which balances our confidence in our core strategies in recognition of the uncertain macroeconomic environment. We are excited for the upcoming holiday season and the product, service and experience we provide to the our athletes.”
Read the full earnings release here.
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